This PPT slide, part of the 407-slide Complete Business Frameworks Reference Guide PowerPoint presentation, presents an overview of the GE-McKinsey Matrix, a strategic tool used to evaluate business units based on 2 primary dimensions: Industry Attractiveness and Business Unit Strength. This matrix is structured as a 3x3 grid, where the Y-axis represents Industry Attractiveness, categorized into high, medium, or low scores. This dimension assesses the potential for a business to enter or thrive in a market.

On the X-axis, Business Unit Strength is plotted, which gauges the firm's capacity to compete effectively within the market. Factors influencing this dimension include market share, brand positioning, and customer loyalty. The intersection of these 2 axes allows executives to visualize where their business units stand in relation to market opportunities and competitive capabilities.

The slide further outlines 3 potential investment strategies that can be derived from the matrix: Grow/Invest, Hold/Protect, and Harvest/Divest. Once a business unit's position is determined on the grid, executives can make informed decisions about resource allocation. For instance, units in the "Harvest" section should only receive investment if they generate returns exceeding the initial investment.

This framework is particularly useful for executives seeking to prioritize investments and strategically allocate resources across various business units. It simplifies complex market dynamics into actionable insights, enabling leaders to make data-driven decisions that align with their overall business strategy. Understanding this matrix can enhance strategic planning and operational efficiency.

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Consulting Frameworks Strategy Frameworks Consulting Training Gap Analysis Strategic Planning Customer Loyalty Positioning